FHA 203k Streamline vs 203k Full Renovation

The main concept behind these loans a.k.a Rehab, Renovation, 203k and Home Improvement loans is quite simple, clients who wants to finance the costs of home improvements through the mortgage for a purchase or refinance.

Financing the costs of the home improvements through the mortgage can be cheaper than high interest credit cards, emergency savings and high interest unsecured loans.

Don't worry about the appraised value if the house is in bad shape, the loan is based on the after improved value of your improvements.

Typically these loans can close in 30-45 days, with contract work started within 30 days of closing.

Whats the difference between the 203k Streamline and Full Renovation?

FHA 203k Streamline

NO HUD CONSULTANT - this is the biggest distinction here compared to full renovation. Saves time and delays.

Less fees vs a Full Renovation - cheaper

No Reserves - Full 203k requires reserves

Restricted to $35,000 in repairs - *no major structural repairs* Over 35k is Full 203k.

No Inspections - over 15k in repairs just needs to verify work is done.

No Contingency Added

Repairs must be completed in 6 months - no extensions, after 6 months must be kicked to full renovation.

Owner Occupied / 1-4 family

Rennovation Specialist

Renovation programs are great for 1st time home buyers providing solutions for needs and wishes into reality.

With Foreclosures and short-sales on the rise, many homes on the market need a lot of T.L.C and most of the time the previous owner had not taken complete care with the home, this is repair the 203k loan can shine for you.

Remember, not all Mortgage Professionals offer 203k Loans. Consult with a Renovation Specialist who can guide you through the decision in Streamline vs Full Renovation. By the way...I offer both :)

I love this product and I am currently working a deal in which my client is planning on using it. Great opportunity for buyers to improve a duplex that they will be living in. They are newlyweds and first-time buyers and don't have a lot of cash sitting around. Should prove to be a great deal for them. Thanks for the great post!

Thanks for the information and clarification between the two programs. The streamline is a great program. I haven't done much with FHA's because I'm in California and up until very recently our housing prices have been too high for FHA loans. Now that houses are much more affordable, we are really starting to use FHA loans.

I have done alot of 203K full versions in the past and its alot of work. The Streamline looks like its much easier now. I do have a question though for anyone thats done a StreamLine...since there is no mandatory HUD Consultant required who determines what repairs are "necessary" to bring the property up to FHA standard? Does this analysis rely then soley on the appraiser as far as what repairs he deems must be completed to meet FHA standards? Thanks.

203kOnLine.com, covering California & most other states - Fairfield, CA

FHA 203k Consultant 707-812-7668

While the streamline 203k is a great product a word to the wise... A streamline 203k with over $15,000 in work need a plan reviiewer... if you have trouble finding one just ask your consultant who by the way, is a Plan Reviewer too. If the plan reviewer or the appraiser finds things that require repair that weren't listed on the streamline scope of work this has just become a full consultation. There is a simple solution, just have the borrower be diligent when looking at the building with their contractor and include anything of a health or safety nature as well as what they want to do. I have many 203k projects completed and have seem most everyting since 1994. I like people talking up this program. Good job.

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